

| Legislative Watch |
North Carolina |
The lawmakers told a special committee studying transportation needs the current formula doesn’t account for congestion in the state’s largest cities.
Population accounts for half of the formula, which has been in place since 1989. The number of highway miles still set to be widened from two to four lanes and the division of the state into seven geographic regions make up the other half of the formula, the Charlotte Observer reported.
The GOP lawmakers also want to end the annual practice of routing $172 million from roads to the general state budget.
The ideas offered by Stam and Berger are among those expected to get attention from the 21st Century Transportation Committee later this month. The committee is a special state panel studying road and transit needs.
Among the options likely to be priorities for the committee is ending the annual $172 million transfer, repairing bridges and subsidizing proposed toll roads, the Observer reported. The panel is expected to make initial recommendations on the state transportation budget to the General Assembly by May.
8/24/07-In the face of a massive shortfall, officials in North Carolina are trying to determine how to pay for road and bridge work in the state.
To make matters worse, about $170 million is scheduled to be routed from transportation this year to general services that include schools, health care and prisons.
“The public perception is that we collect taxes to be used for roads. And yet we use those taxes for something else,” Sen. Phil Berger, R-Rockingham, told the Charlotte Observer.
Berger is among the Republicans in the Democrat-controlled statehouse who have argued against increasing taxes for roads as long as funds are diverted for other uses.
Democrats also have declared their intent to end the payments but they caution an abrupt shutoff would leave the state budget off kilter.
A North Carolina Department of Transportation report said the state needs $122 billion during the next 25 years to keep up with demands. During that time, it was estimated $57 billion is available – leaving a $65 billion gap.
The state relies on taxes applied to motor fuels and car sales as well as collecting fees to pay for transportation work. Federal aid also helps foot the bill for projects but rising costs for construction materials, including asphalt, have made it more difficult to pay for needed road and bridge work.
Among the possible solutions offered to help eat into the funding gap is adding tolls on some new roads. Another suggestion is to boost the 3 percent tax on the sale price of vehicles, the Observer reported.
Gov. Mike Easley said he will appoint a study group to look into how the state pays for transportation projects. The group could report back to the governor in time for the 2008 regular session.






